Sentiment among companies in Germany has improved. The ifo Business Climate Index rose in February to 88.6 points, up from 87.6 points in January. Companies were more satisfied with their current business situation. Expectations also developed positively. The German economy is showing first signs of recovery.

• In manufacturing, the index increased once again. This was driven by considerably better assessments of the current business situation. Although expectations declined, the order situation developed positively, and there was an upward correction in production planning.
• In the service sector, the business climate improved, expectations in particular rose. Service providers were also more satisfied with the current business situation. The business climate indicator in the logistics sector improved considerably.
• In trade, the index declined a little with companies assessing their current situation as slightly worse. However, the outlook for the coming months was corrected upward marginally. While trends in the wholesale segment improved slightly, sentiment among retailers declined significantly.
• In construction, the business climate continued to improve. Assessments of the current situation were more positive, with the same also being true for expectations. However, the order situation is only recovering slowly.

Sentiment among companies in Germany has remained unchanged. The ifo Business Climate Index held steady at 87.6 points in January. Assessments of the current situation edged up somewhat, while expectations were revised slightly downward. The German economy is starting the new year with little momentum.

• In manufacturing, the index increased sharply. Companies assessed current business conditions as more positive. Their expectations were also notably less pessimistic. However, capacity utilization fell from 78.1 to 77.5 percent, remaining below the long-term average of 83.2 percent.
• In the service sector, the business climate deteriorated. The current situation was assessed as slightly worse. Expectations also turned somewhat more pessimistic. In logistics, order backlog and sentiment weakened. The business climate also cooled noticeably in tourism.
• In trade, the index rose sharply. Companies rated their business situation as more favorable, and expectations also became less pessimistic. This improvement was seen in both retail and wholesale trade. However, both indicators remain well below their long-term averages.
• In construction, the business climate improved. This was driven by a better assessment of current business conditions. However, the expectations indicator was unchanged. The order situation remains weak, particularly in building construction.

Sentiment among companies in Germany has deteriorated once again. The ifo Business Climate Index fell to 87.6 points in December, down from 88.0 points  in November. Companies are more pessimistic about the first half of 2026, while their assessment of the current situation remained unchanged. The year is ending without any sense of optimism.

• In manufacturing, the index fell. Almost all sectors were affected. This development was driven by more pessimistic expectations. Assessments of the current situation were slightly better, albeit at a low level. The number of new orders declined, and companies are planning to scale back production.
• In the service sector, the business climate has fallen back into negative territory. Service providers were less satisfied with current business and reported lower expectations. The business climate declined in in almost all service sectors. One exception is the restaurant business, reporting a very strong December.
• In trade, the index deteriorated. Assessments of the current situation have been revised downward. The outlook for the first half of the next year is also gloomy. Retailers were dissatisfied with Christmas sales.
• In construction, the business climate remained unchanged at a low level. On the one hand, companies assessed the current situation as worse. On the other hand, they are less skeptical about the coming month.

Sentiment among companies in Germany has deteriorated. The ifo Business Climate Index fell to 88.1 points in November, down from 88.4 points in October, due to more pessimistic expectations. On the other hand, companies assessed their current situation as somewhat more positive. They have little faith that a recovery is coming anytime soon.

• In manufacturing, the index fell. Expectations in particular took a significant hit. Companies are more skeptical about the months ahead. They reported lower order books. Current business conditions, however, were slightly better.
• In the service sector, the business climate improved once again. Service providers assessed the current situation as somewhat more positive; however, their expectations deteriorated slightly. There was a noticeable setback in the transport and logistics sector, while sentiment in tourism brightened significantly.
• In trade, the business climate deteriorated. Companies assessed their current situation as somewhat worse, and expectations also declined. Retailers, in particular, were disappointed at the start of the Christmas season.
• In construction, the index recorded a decline. While the current situation shows a clear upward trend, expectations were once again more pessimistic. Weak demand remains a decisive bottleneck.

Sentiment among companies in Germany has improved. The ifo Business Climate Index rose to 88.4 points in October, up from 87.7 points in September. This was due to improved expectations for the coming months. However, the current business situation was assessed as slightly worse. Companies remain hopeful that the economy will pick up in the coming year.

• In manufacturing, the index rose. Expectations in particular brightened. However, companies were less satisfied with current business. The decline in new orders has come to a halt. Capacity utilization rose by one percentage point to 78.2 percent, but remains well below the long-term average of 83.3 percent.
• In the service sector, the climate improved significantly. Service providers were less skeptical about the coming months. The current situation was revised slightly upward. Sentiment in tourism and IT services improved in particular.
• In trade, the business climate brightened. This was due to less pessimistic expectations, particularly in wholesale. However, the current situation was assessed as somewhat worse.
• In construction, the index declined slightly. While the current situation was assessed as noticeably better, expectations were more pessimistic. A lack of orders remains a key problem for the industry.

Germany’s ifo Business Climate Index fell to 87.7 (vs 89.3 expected) in September 2025 from 88.9 in August, marking weaker sentiment as both current assessments and expectations softened.

• The Current Situation Index edged down to 85.7 (Aug: 86.4), reflecting less satisfaction with ongoing business conditions.

• The Expectations Index declined sharply to 89.7 (Aug: 91.4), signaling growing caution about the outlook.

• Overall business climate balances worsened to -8.3 (Aug: -5.7), indicating a setback in recovery prospects.

• Manufacturing sentiment fell to -13.3 (Aug: -12.4), with weaker current activity and another drop in new orders.

• Services slipped back into contraction at -3.0 (Aug: 2.6), its lowest since February, with notable weakness in transport and logistics.

• Trade deteriorated to -22.9 (Aug: -21.4), as expectations worsened despite a slight improvement in current retail assessments.

• Construction improved to -14.6 (Aug: -15.5), with firms more satisfied about current activity and expectations continuing to brighten.